Robert purchased a bond today with a 20-year maturity and a yield to maturity (YTM) of 8%. The coupon rate is 5% and coupons are paid annually. The par value is $1,000. Robert is going to hold this bond for 2 years and sell the bond at the end of year 2. The bond's yield to maturity will change to 9% at the time when Robert sells the bond. Assume coupons can be reinvested in short term securities over the next 2 years at an annual rate of 12%.

What is Roberts annual return on this bond investment?

A. 12.44%

B. 7.13%

C. 8.13%

D. 3.51%

E. None of the above